Impact of Donald Trump’s Tariffs on Life Science
09 May, 20253 minsSince Donald Trump has started his second term in office, it has been a turbulent 100+ days....
Since Donald Trump has started his second term in office, it has been a turbulent 100+ days. Professionals within the Life Science industry are grappling major policy changes. The new tariffs have been introduced, and are now threatening to reshape supply chains and cost structures across pharmaceutical, biotechnology, medical device and CROs. Below, we will outline into how these tariffs are impacting each segment of life science, driving supply chain shifts, increasing costs, prompting regulatory responses, and altering global competitiveness.
Pharmaceutical
Pharmaceutical manufacturers initially breathed a sigh of relief when President Trump’s blanket 10 % import tariff expressly exempted finished drugs and APIs, preserving the status quo for medicines entering the United States. However, this appeared to be short-lived as on April 1st, the administration launched a fast track Section 232 investigation into pharmaceutical imports, this has been cited to national security concerns on over reliance on foreign API production with a report and potential 10-25% duties expected as early as May 2025 (Reuters, April 2025). Ahead of the formal tariff implementation, drugmakers such as GSK and AstraZeneca are actively lobbying for extended carve-outs and phased entry to avoid the sudden supply-chain shocks (Reuters, April 2025).
Although 10-25% tariffs wouldn't appear to be too grave but they carry enormous stakes. The US imported $203billion in Pharmaceuticals in 2023, this is a volume that an EY‑PhRMA analysis warns could translate into an additional $51 billion in annual U.S. drug spending with and consumer prices jumping by up to 12.9 % if costs are fully passed on (Reuters, April 2025) As manufacturers rush to adjust supply chains and petitions for exclusions, talent demand is surging for GMP engineers, tech-transfer leads and trade compliance specialists who can navigate evolving tariff codes and keep production flowing.
Biotechnology
Smaller biotechs and pre-commercial firms are bracing themselves for rising R&D costs as Trumps tariffs drive up prices for imported reagents, biopharmaceutical ingredients and lab consumables. A recent BIO survey has found nearly 90% of US biotechs rely on imported materials for at least half of their FDA-approved products. (Fierce Pharma, March 2025) At the same time, multiple Trump executives orders have blocked NIH grant funding and prompted mass layoffs at federal health agencies. adding further uncertainty and squeezing early-stage research budgets (Reuters, April 2025).
In recent months, several multinational pharma companies announced major U.S. investment plans: Switzerland’s Roche is investing $50 billion and Novartis $23 billion in U.S. facilities; UK-based AstraZeneca pledged $3.5 billion and is relocating some drug production from Europe to the States . Even U.S. companies are expanding domestic capacity with Eli Lilly and Company is spending at least $27 billion on four new U.S. manufacturing sites.
Many biotech SMEs lack the capital to shift production stateside. Instead, they’re racing to qualify alternative CDMO partners, negotiate “tariff‑pass‑through” clauses and reprioritize project pipelines around domestic supply where possible. This is creating demand for CMC/process‑development scientists, vendor‑qualification experts, and regulatory‑compliance specialists who can help biotech teams reconfigure global supply chains without derailing critical timelines.
Medical Device
The blanket 10% import tariff hit medical device and diagnostics with no carve-out, instantly exposing everything from surgical instruments to MRI scanners to new levies. Industry groups such as AdvaMed and the American Hospital Association has urged the White House to exempt critical medical device products warning that the tariffs "would hurt innovation, costs jobs and increase healthcare costs" but their appeals went unanswered. (MedTechDive, 2025)
U.S. device makers depend on components sourced from over 20 countries with more than 50 % of parts for some firms coming from China making this an especially vulnerable, globally integrated supply chain. (Financial Times, April 2025) With the 90‑day pause on reciprocal duties set to expire in July, medical imports now face not only a 10 % baseline tariff but also potential spikes to 20 % on EU‑made goods, 24 % on Malaysian components, and 34 % on Chinese‑made parts, according to a J.P. Morgan analysis. (MedTechDive, 2025)
CRO
The baseline 10% US duty on research supplies and China's retaliatory 125% tariff on US lab gear (Reuters, April 2025), CROs now face approximately 13% higher costs on trial consumables, costs which account for about 13% of hospital supply budgets (Clinical Trials Arena, February 2025).
Major suppliers like ThermoFisher have already warned of these headwinds which are forecasting a $400 million drop in China revenues due to retaliatory tariffs on U.S. lab equipment (Reuters, April 2025) and pledging $2billion in new US capacity to offset tariffs.(Pharma Manufacturing, April 2025) In response, CROs are inserting tariff escalation clauses into master service agreements, and exploring on-shoring options and moving non-critical trial phases overseas where duties are lighter. As study budgets swell, demand is surging for global‑sourcing specialists, tariff‑compliance managers, and supply‑chain coordinators to keep trials on track and on budget.
How You Can Use These Tariffs Into Your Competitive Advantage
At Barrington James, we understand that talent is your best bet against trade uncertainty. Whether you're scrambling to requalify suppliers for clinical trials, work with new GMP lines in the US, or navigate complex HS code regulations. Our specialized consultants work within niche sectors and can work side-by-side with your leadership to establish tariff-proof teams through the entire development cycle.
Whether you’re seeking specalized talent, exploring career opportunities, or looking to stay informed with the latest industry insights, our team is dedicated to connecting you with the resources you need. Discover how our specialized expertise in Life Science staffing can drive your growth and innovation.
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